NZD/USD Daily: Broke Above Pivot Level after Spinning Top
Trading Idea: Long positions above 0.7675 targeting 0.77
Technical reasons why: After breaking above the Ichimoku cloud the pair formed a spinning top on Friday followed by strong bullish sentiment beginning of the week, to continue within a rising channel.
Event Risk: US Consumer Confidence out at 3 PM GMT. Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. A better than expected outcome will strengthen the USD ultimately resulting in drops in NZD/USD
Alternative Scenario: Below pivot level at 0.76 look for further drops targeting 0.7460
Suggested stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 0.7460 | 0.7600 | 0.77700 |
| 0.7350 | 0.7675 | 0.7831 |
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